On Wednesday, the Board of Governors of the Federal Reserve met in Washington, D.C., and agreed to a 0.5% — or 50 basis point — cut to the federal funds effective rate. The 0.5% cut, which lowered the federal interest rate to between 4.75% and 5.00%, exceeded general economist expectations of a 0.25% cut. It is the first Federal Reserve (Fed) interest rate cut since April of 2020.
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